Uruguay pulp mills: “no risk”

News|Bretton Woods Project|23 November 2006|update 53|url
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The IFC and MIGA have approved funding for a controversial pulp mill project in Uruguay. This follows an IFC-commissioned impact assessment which found few environmental and social risks. The project is being built by by Finland's Botnia in the town of Fray Bentos on the Uruguay River dividing Uruguay from Argentina. Funding for a second project by Spain’s ENCE is on hold since its announcement to relocate its plant elsewhere. In July the International Court of Justice (ICJ) in The Hague rejected the Argentine request to order Uruguay to suspend construction of the two mills. An ICJ judgement on whether Uruguay has breached the 1975 river treaty, under which all matters regarding the water in the river must be agreed to by both countries, is expected within two years. Major blockades by local activists on the Argentine side have resumed.

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Published: 23 November 2006 , last edited: 21 August 2007

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CounterBalance, a new European coalition of development and environmental non-governmental organisations formed specifically to challenge the European Investment Bank (EIB), has launched its website. The EIB is the world's largest public lender. Find out more about it from CounterBalance.